Which of the following is true of the dividend reinvestment plans??
A. ?The plan offers fixed dividends to its investors.
B. ?The plan offers a constant percentage of its earnings as dividends to its investors.
C. ?The plan offers to automatically invest dividends in the stocks of the dividend-paying firm.
D. ?The plan offers to give management rights to investors if they reinvest their dividends in the firm.
E. ?The plan offers extra dividends when it has less investment opportunities to generate profits.
Answer: C
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